After Brad Garlinghouse announced the RLUSD stablecoin at the beginning of the month, much more information has been released recently, including the main features, launching date, and exchange listing partners. However, the Ripple Vs. SEC lawsuit is still putting a lot of pressure on the blockchain services provider and the native token, making users worry about the stablecoin’s performance and its impact on the XRP price.
Why RLUSD Stablecoin Might Be a Game-Changer?
This RLUSD is a stablecoin whose value is pegged to the US dollar in a 1:1 ratio. With this, it will come with additional stability compared to normal altcoins. The firm has launched it to use it in cross-border payment. Additionally, they anticipated it to reach $2-3T in market cap within five years and become the widely used payment tool.
Ripple CEO has arranged an early start, as they have already planned listing partnerships. It included the top crypto exchanges like Bitstamp, Bitso, Uphold, and many others. The blockchain service provider has also emphasized strategically developing this Ripple stablecoin to meet every regulatory standard, including the New York Department of Financial Services (NYDFS) standards. Monica Long, the firm’s President, has revealed that the RLUSD stablecoin is built to offer high transparency and compliance.
To make it beat the current popular stablecoins like USDT and USDC, the team has introduced a specific advisory board to run the process smoothly. They have onboarded influential personalities like former Federal Deposit Insurance Corporation’s Chair, Sheila Bair, and many others. The firm has primarily focused on the customer and the partners’ demand for high-quality stablecoins suitable for various financial needs, including payments, tokenization, and even DeFi. More importantly, this Ripple stablecoin is designed to deliver faster, more reliable, and budget-friendly cross-border payments.
The official announcement declared that,
With our initial exchange partners, the clear utility and demand for RLUSD, and a strong focus on regulatory compliance, Ripple’s stablecoin is poised to become the gold standard for enterprise-grade stablecoins.
In conclusion, it focuses on heavy regulations, monthly audits (by third-party firms), and maintaining a credible reserve. It makes it stand apart from the rest of stablecoins. More importantly, its goal to provide high transparency and compliance will make it a game changer in the crypto industry.
Is RLUSD Stablecoin A Threat To XRP?
With the never-ending lawsuit, the XRP users were quite disappointed with the token’s situation. At a time when the Bitcoin price rally is moving forward to new highs, the Ripple token is still struggling on charts. Even at the time of writing, the XRP price is around $0.54, which is nothing much other than a disappointment.
Now, things might turn for the best, with the lawsuit reaching an end and the introduction of the Ripple stablecoin, but a few see it as a threat to the XRP. However, the firm CTO has already assured the holders of stablecoin never to replace it.
Only XRP can be used to pay transaction fees on XRPL. Everyone who transacts must have XRP to pay those fees. XRP is the only asset that every account can hold and that has no counterparty or jurisdiction and cannot be frozen or clawed back. XRP has structural advantages on XRPL…
— David “JoelKatz” Schwartz (@JoelKatz) October 8, 2024
As per him, XRP is the only way to pay the transaction fees on this XRPL. More importantly, every account must hold the native token to make the transactions. He also focused on auto-bridging to assure the users of parallel collaboration rather than threats to each other. However, he also noted that if the Ripple stablecoin could function better than the XRP in what it can do, not RLUSD but any other stablecoin could beat it. It shows the unwavering trust of the CTO in the existing native token.
The post How Ripple’s RLUSD Stablecoin Could Be a Game Changer? appeared first on CoinGape.
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